Welex, your motivated accountants in Marbella!
At the end of the year, Spanish companies must focus on closing their accounts. Ideally, it helps to have a team of experts, like those at Welex, do the work and file your yearly tax return. We will explain some basic issues related to the closing of your accounts from the tax point of view so you will know which formalities you need to correctly comply with in your Spanish company.
General verifications to close the tax year in Spain
Obviously, we will provide you with some general information that is relevant for all kinds of companies; however, it is important to note that each case is different and may vary.
- First, we will verify when the fiscal year has started.
- We will determine if the payroll payments and other payments are correct. This is important because, otherwise, we must resolve the imbalance with the appropriate authorities.
- It is also important to verify the reconciliation of the company’s bank accounts.
- Special attention must be paid to review all three-monthly VAT returns that were made during the year (if one full year has passed since the start, then four quarters must be verified)
- In order to correctly close a company’s accounts, the three-monthly income tax returns must be adequately verified in order to create the annual reconciliation statement.
- Of course, we must also consider the Spanish corporate tax that usually matches the full tax year.
- It’s also important to remember all the expenses arising from, for example renting, as well as retentions and any expenses that were incurred during the fiscal year.
These are the basic components that must be verified before closing a company’s accounts. We must also make certain adjustments, such as amortisations and reclassification of short- and long-term credit or provisions.
Now let’s suppose that you have everything ready. When must you present the document, and where?
In principle, this document must be presented during the month of April. However, you must duly inform the Tax Office of those operations carried out with third parties that exceed the sum of 300.506€ by filling in model 347.
Once you have presented the closing of the annual fiscal year of the company, you must duly legalise the accounting books at the Companies House within the next four months.
Do you have a company in Spain? Do not hesitate to contact one of our English-speaking accountants at our firm in Marbella.
Welex: your motivated lawyers and accountants under one roof.
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